Traditional long-only mutual fund managers certainly aim to differ from their benchmarks so they can justify their fees. But many are also afraid to manage portfolios that appear too different from their indexes because if they underperform, they'll be fired, says John Lunt, president of Salt Lake City-based money management firm Lunt Capital Management.

The result: many mutual fund managers are hugging their benchmarks too closely and are failing to overperform, pushing more money to ETFs. Lunt speaks with Money Management Executive about how the perception of career risk among mutual fund managers are giving ETF managers are leg up and what that means for the industry.

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